New legislation plans in the tax regime for Belgian investment companies
In the context of the budget control for 2013 and for 2014, the federal government in Belgium has reached an agreement about a change in the tax regime for Belgian investment companies. The withholding tax of 25% borne by Belgian investment companies on dividends received will no longer be creditable and repayable (implementation of the judgment of the CJEU in the case Commission v Belgium of 25 October 2012).
Impact on foreign investment companies
As a result, it would seem that foreign investment companies that suffer Belgian withholding taxes will no longer be discriminated from a European law point of view. Indeed, under this new legislation, both resident and non-resident funds would be subject to WHT without possibility to credit the WHT. If this draft bill is adopted, the possibility to reclaim withholding taxes based on the ECJ decision in the Aberdeen case would no longer exist.
The new tax regime for Belgian investment companies is likely to apply as from 2013. However, please note that the mentioned tax measure may still be subject to change.
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